As a business owner/leader you’ll be no stranger to the importance of sales – it’s what brings in revenue and drives growth. However, there’s another aspect of business that shouldn’t be overlooked either – account management. In fact, good account management can be the difference between a one-time sale and a lifelong client.
So, what is account management, and how does it differ from sales?
In short, ‘sales’ is the process of acquiring a new client, while ‘account management’ is the practice of nurturing and maintaining relationships with existing clients.
Good account management involves building trust, understanding your clients’ needs and goals, and providing ongoing support and solutions to help them achieve those objectives.
But why is good account management so important? For starters, it helps to increase client retention and loyalty. When clients feel valued and supported, they’re more likely to continue doing business with you and recommend your services to others. They become what I call advocate clients, and an extension of your sales team.
They become what I call advocate clients, and an extension of your sales team.
In fact, studies have shown that acquiring a new client can cost five times more than retaining an existing one. Which means investing in good account management can save your business money in the long run.
Additionally, good account management can lead to upselling and cross-selling opportunities. By understanding your client’s requirements and ambitions, you can identify areas where additional services or products may be beneficial and offer those solutions in a way that is genuinely helpful. Leading to increased revenue and profitability for your business. A win/win.
Another benefit is that it can help you stay ahead of the competition. When you have a strong relationship with your clients, where they value that relationship and the level of support you provide, they are less likely to switch to a competitor, even if they offer similar products or services.
Depending on the size of your organisation you might have a dedicated account manager or an entire account management team. Whether it’s one person or many they should be responsible for building and maintaining relationships with clients, understanding their business, and providing ongoing support and solutions. They also need to be knowledgeable about your products or services and able to answer any questions or concerns your clients may have – or know where to go to get the answers.
Check in regularly with your clients and gather feedback. This can help identify areas where you can improve your products or services and adjust to better meet their needs. It also demonstrates to your clients (if you follow through) that you value their opinions and are committed to providing the best possible service.
Overall, while sales are undoubtedly important, good account management should never be overlooked. By prioritising your existing clients and providing them with the support they need, you can build strong, long-lasting relationships that will benefit your business for years to come.
If you’d like to know more about how I can help you build account management excellence into your business, contact me for a chat.
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